KUALA LUMPUR: Bioalpha Holdings Bhd's unit Bioalpha International Sdn Bhd (BISB) has signed a deal with Shanghai Bukun Trading Co Ltd (SBTC) for the procurement and distribution of Covid-19 vaccines in Malaysia.
The deal would involve a total of 100,000 doses of fully imported Sinovac vaccines from SBTC for the initial batch, while subsequent orders can go up to one million doses.
The integrated health supplement provider said the vaccines supply would be mainly used for expatriates and foreign workers from various industries locally.
The agreement is effective from January 25, 2021 and shall remain in force for a period of two years.
Managing director William Hon said the deal would include but not limited to the Covid-19 vaccine developed by Sinovac Biotech Co Ltd (Sinovac Biotech), subject to relevant authorities' approvals.
"While we understand the government will be providing the vaccine free-of-charge to citizens, we have been receiving queries from corporates who are interested to inoculate their employees including foreign workers soonest possible once regulatory approvals are granted, and are willing to pay for it," he said at a virtual press conference today.
He said there will be more demand for the vaccines in the private sector with the daily number Covid-19 cases increasing at an alarming rate, with the manufacturing and construction sectors contributing to the infection rates.
"This is mainly due to challenges in relation to the foreign workers' dormitories and transportation where they tend to congregate in large number," he said.
Hon said vaccination was the crucial solution to curbing the spread of the virus, enabling the businesses to maintain smooth operations at the factories and construction sites without having to halt operations due to Covid-19 cases.
He said the vaccines would be purchased on a 'ready-to-administer' basis directly from China which will not require further fill and finish processing.
However, Hon said the Covid-19 vaccine is subject to approvals being obtained from the local authorities, namely the Health Ministry (MoH), the National Pharmaceutical Regulatory Agency (NPRA) and other relevant parties.
"Bioalpha is currently in discussion with MoH, NPRA and Science, Technology and Innovation Ministry (MOSTI) to ensure effective implementation of the initiative.
"The group will also submit application to NPRA soonest possible for the registration of vaccine in Malaysia, relying on clinical data from China, Indonesia, Turkey and Brazil," he said.
Hon said Bioalpha would not have to incur higher capital expenditure to set up any fill-and-finish facility as the imported vaccine would have been processed and filled in vials.
"We will only need to finance the working capital for this project, which will be funded by internally generated funds or bank borrowings," he said.
This venture would expand Bioalpha's distribution into the vaccine business to grow its earnings base.
"Besides Covid-19 vaccine, we also look into opportunities to bring in other vaccines to Malaysia as well, leveraging on the platform and partnerships that we have established.
"At the moment, we are already carrying a full range of medical drugs, medical equipment and health supplements through our retail pharmacy chain, Constant Pharmacy," he said.
Hon said Bioalpha would leverage on its existing network in the healthcare industry by engaging with pharmaceutical company, Zuellig Pharma Sdn Bhd to undertake the facilitation of the import, warehousing and distribution of the Covid-19 vaccines in Malaysia.
ZP is the largest vaccine distributor in Malaysia with broad experience and capabilities to safely store and distribute vaccines in temperature-controlled environments."
Bioalpha had signed a memorandum of understanding (MOU) with ZP on January 22, 2021 allowing the latter to provide the distribution services while BISB will coordinate with SBTC to facilitate the availability of the vaccines.
Meanwhile, Bioalpha has partnered with iHEAL Medical Services Sdn Bhd (iHEAL) to undertake the vaccine administration exercise.
iHEAL owns and operates the iHEAL Medical Centre Kuala Lumpur, a medical centre licensed by MOH.
"We have partnered with iHEAL to handle the vaccination administration for us. Apart from administrating the vaccine at the medical centre, iHEAL will also provide services such as arranging on-site vaccination with a mobile team of medical practitioners, designating a large space to undertake mass vaccination efficiently, providing a certificate of vaccination and professional consultation post-vaccination, among others."
Hon said Bioalpha will continue to pursue earnings-accretive opportunities to complement its core business, creating larger value for stakeholders.